Language

Google Translate Disclaimer

A number of pages on the Government of Saskatchewan's website have been professionally translated in French. These translations are identified by a yellow box in the right or left rail that resembles the link below. The home page for French-language content on this site can be found at:

Renseignements en Français

Where an official translation is not available, Google™ Translate can be used. Google™ Translate is a free online language translation service that can translate text and web pages into different languages. Translations are made available to increase access to Government of Saskatchewan content for populations whose first language is not English.

Software-based translations do not approach the fluency of a native speaker or possess the skill of a professional translator. The translation should not be considered exact, and may include incorrect or offensive language. The Government of Saskatchewan does not warrant the accuracy, reliability or timeliness of any information translated by this system. Some files or items cannot be translated, including graphs, photos and other file formats such as portable document formats (PDFs).

Any person or entities that rely on information obtained from the system does so at his or her own risk. Government of Saskatchewan is not responsible for any damage or issues that may possibly result from using translated website content. If you have any questions about Google™ Translate, please visit: Google™ Translate FAQs.

Oil and Gas Processing Investment Incentive (OGPII)

The Oil and Gas Processing Investment Incentive (OGPII) offers transferable oil and gas royalty/freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs.

OGPII is open to value-added projects across all segments of Saskatchewan's oil, gas, and helium sector as well as chemical fertilizer facilities. Eligible projects include:

  • Refineries/upgrading facilities (i.e.,. partial upgraders, asphalt production, and sulphur removal units);
  • Petrochemical facilities (i.e., methanol, ammonia, polypropylene, olefins, and ethylene);
  • Associated gas commercialization projects (ex. processing facilities, waste-gas-to-power etc.);
    • Regional gas gathering projects and projects with multiple phases may also be considered under a single project application;
  • Helium processing or liquefaction facilities;
  • Carbon capture, utilization, and storage for enhanced oil recovery;
  • Commercialization of oil and gas production byproducts and waste products (i.e., lithium extraction from produced water); and
  • Chemical fertilizer facilities.

OGPII is administered by the Ministry of Energy and Resources.

  1. Benefits
  2. Eligibility
  3. How to Apply
  4. Application Documents
  5. Further Information
Top

1. Benefits

  • The oil and gas royalty credits are fully transferable which gives non-producers/non-royalty payers an opportunity to benefit from the program, because they have the ability to transfer credits to oil and gas royalty/freehold production tax payers. Also, OGPII encourages multi-company projects as costs can be incurred by a firm other than the principal applicant.
  • OGPII has a project-specific awarded credit cap of CAD$75 million (i.e., a CAD$500 million project) for oil, gas, and helium projects, and CAD$70 million for chemical fertilizer projects.
  • Credits can be claimed at a rate of 20% of total credits in the first calendar year of operations, 30% in the second calendar year, and 50% in the third calendar year.
  • OGPII can be used alongside other incentive and grant programs available in Saskatchewan.
Top

2. Eligibility

  1. Eligible Activity – all activities that add or create value by processing, transforming, and/or upgrading upstream oil, gas, and helium industry products, by commercializing upstream oil and gas production byproducts and waste products, or by increasing value-added chemical fertilizer production may be considered eligible. Eligible projects can include new (greenfield) facilities or expansions (brownfield) of existing facilities, as well as all enabling infrastructure that is required to bring the project into operation.
  2. Increase in Processing Capacity – the Ministry of Energy and Resources must be satisfied that the project results in a significant increase processing capacity in Saskatchewan's oil, gas, helium or chemical fertilizer industry.
  3. Eligible Costs – the eligible project must involve a minimum investment of CAD$10 million in eligible costs.
Top

3. How to Apply

To apply for the OGPII program, companies need to complete and submit the OGPII Application Form. If you have questions about the application process, refer to the OGPII Program Overview and Application Instructions or contact ogpii@gov.sk.ca. Completed OGPII Application Forms may be submitted to the Ministry of Energy and Resources via ogpii@gov.sk.ca.

The ministry will be accepting applications from 8:00 a.m. (CST) on July 8, 2019 to March 31, 2024.

Top

4. Application Documents

OGPII Program Overview and Application Instructions

OGPII Application Form

Top

5. Further Information

For additional information on the program, contact ogpii@gov.sk.ca.

News Releases:

We need your feedback to improve saskatchewan.ca. Help us improve